Novartis CEO Refutes Recent Report Of Weighing Options For Ophthalmology, Respiratory Units

Novartis AG NVS said it would narrow its focus on five core therapeutic areas, including cardiovascular, immunology, neurodegenerative diseases, solid tumors, and hematology.
But that doesn't mean the Swiss pharma will leave respiratory and ophthalmology altogether, CEO Vas Narasimhan said during the JP Morgan conference.
"We have no intention of despite what that Bloomberg article said. I mean, we're very committed to Xolair. Xolair is a very attractive medicine. We're committed to our in-line ophthalmology brands. But of course, we're – from a relative prioritization, I mean these are just less resourced. I mean, our focus is on those big five therapeutic areas."
The company recently adopted a new organizational model in a restructuring. The pharma giant also laid out a plan to spin off the generics unit Sandoz to focus on novel drugs.
While noncore assets may not get much attention in Novartis' overall business, "if something were to be a significant breakthrough [...] we could build back up," Narasimhan said, noting its company's gene therapy candidate for the macular degeneration disease geographic atrophy.
In September, Novartis revealed insights into the updated company strategy, with the 'US-first' mindset, increasing the share of U.S. patients in clinical trials and building capability and talent, among other actions.
Price Action: NVS shares are up 0.42% at $90.33 on the last check Tuesday.